Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question today from Don Carson from Merrill Lynch.
Don Carson – Merrill Lynch
A question on ag. You had very strong ag results. I’m just wondering to what extent did you see any pull-forward in Brazil, because I know other players down there are talking about a bit of a pull-forward in input purchase. And, Kathy, you mentioned that you think you gained share in corn seed. Can you just quantify that and then talk about how you think that positions you to expand your corn seed business?
Kathy Fothergill
Okay, let me answer some of that. As far as the Brazil, we did see strong growth in Brazil, but I wouldn’t characterize that, at least our currency was we didn’t see that as a pull-forward of third quarter sales. We just think the conditions down there were quite strong.
As far as our market share, as you know, it’s not all final yet; we haven’t had returns. But we think that our sales growth rate was maybe two or three percentage points above the industry growth rate. I don’t know what that does actually for share of market, but we do think we were ahead of the industry growth rate. You know, our Herculex traits are doing quite well, and so we think that bodes well for the future.
Don Carson – Merrill Lynch
And getting back to Brazil, so is that the key reason, Geoffery, why you think you’re going to have strong year-over-year comparisons, would just be strength down in Brazil? And how strong could that second-half year-over-year comparison be in ag?
Geoffery Merszei
Well, I mean Brazil obviously plays an important role, but overall the momentum is very strong across all the regions. So we expect on a comparative basis year-over-year a positive result in most of the regions. And the fundamentals in Brazil overall – as you know, the economy there is doing very well and there’s a lot more liquidity today than what we’ve seen over the last few years, and that gives us a great opportunity to maximize our current products as well as the launches of new products.
Andrew Liveris
Let me just chime in. So we talked Brazil; also Argentina, and there’s an insecticide run in Canada for wheat aphid that’s beginning. So even though U.S. insecticide is maybe not as good, but the insecticide run in Canada – remember third quarter is a down quarter, right, so we’re off the major part of the ag production. But the momentum in ag, Kathy mentioned share point gain in U.S. corn. We can quantify it more exactly, but we were better than industry based on Herculex. And Brazil was strong and no (inaudible).
- To read the full transcript on Seeking Alpha, click here »
